FGV Annual Report 2015

228 Notes to the Financial Statements For The Financial Year Ended 31 December 2015 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Capital risk management policies (continued) Group (continued) Without LLA liability 2015 2014 RM’000 RM’000 Borrowings 3,550,419 2,500,006 Loans due to a significant shareholder 1,893,290 2,202,920 Total debt 5,443,709 4,702,926 Equity attributable to owners of the Company 6,446,847 6,376,233 Gearing ratio 84% 74% The increase in the gearing ratio during the financial year ended 31 December 2015 resulted primarily from net increase in borrowings for working capital requirements. Company 2015 2014 RM’000 RM’000 Loans due to a significant shareholder 1,893,290 2,202,920 Loans due to subsidiaries 833,129 - Total debt 2,726,419 2,202,920 Total equity 7,309,398 7,245,283 Gearing ratio 37% 30% (c) Fair value estimation Amounts that are measured in the statement of financial position at fair value are disclosed by the following fair value measurement hierarchy: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1). • Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2). • Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).